SquareTrade Inc. is an American-based extended warranty service provider for consumer electronics and appliances headquartered in Brisbane, California.

Dispute resolution services

Founded by Ahmed Khaishgi in 1999, SquareTrade launched as the first online service for resolving e-commerce disputes. SquareTrade worked with online marketplaces, such as

eBay eBay Inc. ( , often stylized as ebay) is an American multinational e-commerce company based in San Jose, California, that allows users to buy or view items via retail sales through online marketplaces and websites in 190 markets worldwide. ...

, utilizing an online negotiation tool to automate the

dispute resolution Dispute resolution or dispute settlement is the process of resolving disputes between parties. The term ''dispute resolution'' is '' conflict resolution'' through legal means. Prominent venues for dispute settlement in international law incl ...

process between sellers and buyers. Between 1999 and 2001, SquareTrade raised $15 million in funding from JP Morgan Partners, Weston Presidio Capital, and Draper Richards. That same year, the company launched a merchant-verification service, the SquareTrade Seal. Both original services have since been discontinued.

Warranty services

In 2006, SquareTrade began offering

consumer protection Consumer protection is the practice of safeguarding buyers of goods and services, and the public, against unfair practices in the marketplace. Consumer protection measures are often established by law. Such laws are intended to prevent business ...

plans for portable devices, appliances, and other electronics, both online and through large retailers. That same year, ''

PC Magazine ''PC Magazine'' (shortened as ''PCMag'') is an American computer magazine published by Ziff Davis. A print edition was published from 1982 to January 2009. Publication of online editions started in late 1994 and continues . Overview ''PC Mag ...

'' ranked it number 93 on its list of the "Best 100 Web Sites of the Year." In 2012, Bain Capital and Bain Capital Ventures announced a $238 million investment in SquareTrade, which was the second-largest

venture capital Venture capital (VC) is a form of private equity financing provided by firms or funds to start-up company, startup, early-stage, and emerging companies, that have been deemed to have high growth potential or that have demonstrated high growth in ...

deal of the year. The company's

underwriter Underwriting (UW) services are provided by some large financial institutions, such as banks, insurance companies and investment houses, whereby they guarantee payment in case of damage or financial loss and accept the financial risk for liability ...

has been AmTrust Financial Services, Inc., but as of 2013, SquareTrade was shifting toward Starr Indemnity. SquareTrade was acquired by Allstate in late 2016, for $1.4 billion, joining Allstate's suite of consumer asset protection services.

Lawsuit

In late 2016, a class-action lawsuit was filed against SquareTrade, accusing the company of selling protection plans for products that were not eligible for coverage, which customers only discovered when filing a claim.

References

External links

* {{Allstate, state=expanded American companies established in 1999 Financial services companies established in 1999 Companies based in San Francisco 2016 mergers and acquisitions 1999 establishments in California Allstate Financial services companies based in California American corporate subsidiaries Bain Capital companies